Tesla’s electric vehicle sales in Europe plummeted by 49% in January and February 2025 compared to the same period last year, according to data released by the European Automobile Manufacturers’ Association (ACEA) on Tuesday, March 25.
The decline is partly attributed to aging models, but industry analysts also suggest that some electric vehicle buyers may be avoiding Tesla due to CEO Elon Musk’s political stance. Musk, a prominent supporter of U.S. President Donald Trump, has faced increasing criticism since taking charge of the newly established Department of Government Efficiency, which is pursuing a controversial cost-cutting agenda. This controversy has led to vandalism at Tesla dealerships across the U.S. and a significant drop in the company’s stock price.
ACEA data revealed that new Tesla registrations in the European Union fell to 19,046 in the first two months of 2025, reducing the company’s market share to just 1.1%. February alone saw a 47% drop in Tesla registrations, with only 11,743 units sold. This drop occurred despite a 28.4% increase in overall electric vehicle sales in the EU, which reached 255,489 units and now account for a 15.2% market share. ACEA’s Director General, Sigrid de Vries, acknowledged the challenges in the EV market, stating, “The latest new car registration figures confirm that market demand for battery electric vehicles remains below the level needed for the transition to zero-emission mobility to progress.” She also called for increased tax incentives and investments in charging infrastructure, especially as the EU considers easing emission reduction targets to support struggling European automakers.
While Tesla’s sales declined, hybrid-electric vehicles saw a surge in demand, becoming the largest market segment with 594,059 registrations in the first two months of 2025, capturing a 35.2% market share. In contrast, petrol and diesel vehicles continued to lose ground, with market shares of 29.1% and 9.7%, respectively, in February. As the EV market evolves, Tesla faces increasing pressure to introduce new models and adapt to the political and economic factors shaping consumer behavior.